Is innovation capped by how much funding it receives?
Or is it measured by how much money it generates?
Is it reflected in the disruption to existing industries?
How much of our future business and economy is reliant on the innovation of entrepreneurs? This is a question I asked myself, instigated by the ever musing Fred Wilson and his recent posts on The Venture Capital Math Problem. What is the upper bound on the financial payoff generated by the work and creativity of startup founders (that are fueled by VC funding)?
I use the word all the time but I don't really know how to nail it down or quantify it. Innovation simply means introducing something new. It's definition doesn't include a mention of being better, although when the term is commonly used there is an understanding of improvement with innovation.
If innovation is unquantifiable, why do we use it as a measure of goodness?
My question to you:
How do you measure innovation in your business and why do you do so?